McDonald's reports sales growth for first quarter
McDonald’s global sales at established locations grew by 3.8% during the quarter ending March 31. This growth was steady across different parts of the business. For the United States, sales rose 3.9%, whereas international markets run by the company sales rose 3.9%. Sales rose 3.4% for International markets run by partners.
Total sales across all restaurants, including those owned by franchisees, rose 11% to more than $34 billion for the quarter. When adjusted for currency fluctuations, that increase was six per cent.
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Loyalty program and earnings
McDonald’s reported that its loyalty program (McDonald's Rewards) members accounted for more than $9 billion in sales this quarter. Over the past 12 months, loyalty sales reached more than $38 billion across 70 markets.
The company’s total revenue increased by nine per cent. Operating income rose by 12%, though this included one-time costs of $47 million related to company restructuring. Without those costs, operating income growth was 1%
Net earnings per share were $2.78, a 7% increase from the previous year.
Executive commentary
Chairman and CEO Chris Kempczinski said the results show the company can succeed in a challenging environment through disciplined execution. He credited the performance to the company’s focus on value, marketing and new menu items.
